DPC runs 200 takeaway pizza outlets. More than 75% of its pizzas are ordered via e-commerce. The Managing Director believes that 2017 was a successful year. She commented: ‘Looking to the future, there are signs that the economy is expanding. However, DPC faces several difficulties. The Government plans to raise the minimum wage to $5 per hour. DPC also has to react to environmental pressures. Food waste and litter from used pizza boxes are problems. Complaints from the local community about this are too high.’
(a)[2]
Identify two indicators of business success.
(b)[2]
State two characteristics of a growing economy.
(c)[4]
Identify and explain two ways an increase in the minimum wage might affect DPC.
(d)[6]
Identify and explain two advantages for DPC of using e-commerce.
(e)[6]
Explain two ways in which DPC could respond to environmental pressures. Recommend which of the two options it should choose. Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Growth OR number of outlets” …